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Outsourcing in the management of a modern company. What is worth knowing? Human Resources and Payroll.

There is no doubt that modern entrepreneurs are eagerly opting for HR and payroll outsourcing. This involves handling all legal matters concerning HR and payroll services with an accounting firm that specializes in the subject matter. It can be assumed that the outsourcing fad has taken the modern enterprise management system by storm. In this article, we will explain how HR and payroll should be handled. How it is realized by the accounting office Warsaw Vamik.

What is outsourcing?

It is important to remember that outsourcing services are not only about accounting. The term can be translated as “outsourcing of services.” The word “out” means “outside,” while “source” translates as “source.” Literally translated, outsourcing is “deriving something from a source.” Warsaw accounting office provides comprehensive services for entrepreneurs. It is worth noting that, according to marketing experts, outsourcing only began to be seen in the late 20th century as a strategy for transferring operations that support a company’s core business to external entities that specialize in a particular field. Nowadays, outsourcing is a business management strategy that involves entrusting another company with activities that are not directly related to the company’s core business. This allows the company to pool its resources in those areas that are the pillar and foundation of the business. External, specialized entities are outsourced many tasks that were previously performed by in-house employees. This is why competitive advantages are achieved by companies that use outsourcing. Of particular note is the fact that both parties have benefits from the outsourcing agreement. Some of the most popular areas related to outsourcing include:

  • marketing and advertising
  • human resources service (maintaining personnel files of employees)
  • payroll service (time accounting, payroll, etc.)
  • employee training
  • internal audit
  • IT systems
  • customer service
  • Representing the company before the Social Security Administration,

That is, to conduct a comprehensive service of personnel and payroll processes.

Legal issues

Keep in mind not to confuse an outsourcing contract with an outsourcing contract. It is worth noting that outsourcing is not a legal term, and Polish law does not regulate this phenomenon. It is a term at the intersection of economics and management. It is important to emphasize that an outsourcing contract and an outsourcing contract are two different contracts. It can be assumed that outsourcing is a long-term activity. In Poland, outsourcing contracts are referred to as unnamed contracts. An outsourcing contract can take the form of one, as well as several contracts. The possibility of outsourcing bookkeeping is provided for in the April 10, 2010 Accounting Law. The main advantage of using outsourcing in a company is financial. The main argument is, of course, a significant reduction in costs. HR and payroll outsourcing is when an outsourcer, as part of a service, takes over the execution of HR and payroll tasks from the principal. Another important advantage is that there is no need to maintain an in-house HR and payroll department, as well as the certainty of a high-quality service. It should also be mentioned that outsourcing allows you to concentrate your resources and forces on the core objectives of the company. By saving time and human resources, companies significantly increase their productivity. Maintaining lower employment levels is also a plus. In addition, we receive a guarantee that those directed to the outsourced activities are professionals in their field.

Advantages of using HR and payroll outsourcing

Outsourcing results in a company being able to reduce investment in organizing and maintaining periodic activities. It is safe to say that this relieves the burden on various departments. Studies confirm the advantages of outsourcing HR and payroll. Its use makes it possible to cut costs in HR and payroll processing and achieve savings of 30-40% on the full cost of internal accounting. An entrepreneur doesn’t have to worry about many things, so outsourcing is a big convenience for him. If accounting is done in-house then you need to keep in mind not only personnel matters, but also equipment and storage of personnel data. There is no need to worry about this if the company decides to outsource. Undoubtedly, outsourcing accounting services for running the payroll and HR department helps streamline procedures. Not everyone is aware that outsourcing expenses can be included in the cost of doing business. The bottom line is that there is less risk of errors if our financial affairs are handled by a reputable accounting firm such as Vamik Warsaw. It should be noted that the risk of the orders being executed is assumed by the company offering accounting services. It is this company that is then responsible for non-compliant activities within the established scope of services provided. This allows the company’s employees to focus on key company activities.